The Bapcor Share Price Up 5% Today, Why? (ASX:BAP)

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Bapcor Stocks - ASX Shares

Dear Reader,

Bapcor Ltd [ASX:BAP] shares are up over 5% today. And that appears to be despite no news from the company.

They are set to report earnings on 12 February. And this may be leading investors to speculate on good news coming shortly.

Bapcor listed on the ASX at $1.89 in April 2014.

Today, the Bapcor share price is $6.81. Now that’s a healthy gain of 261% gain in just six years.

The company now has a market cap of $1.84 billion.

You may be wondering if you should invest today?

Let’s take a look…

Who is Bapcor Ltd [ASX:BAP]?

Bapcor is the largest second-hand car parts distributor in the country.

Bapcor operates in Australia and New Zealand.

The company operates from ‘end to end’. That means they are involved in the whole supply chain.

It has trade businesses such as Burson Auto Parts, Precision Automotive Equipments, and BNT.

And the retail businesses that you may recognise like Autobarn, Sprint Auto Parts, and Midas.

All up, the company has over 1,000 store locations across Australia and NZ.

Let’s take a brief look at the company’s previous FY19 update.

Last year the company saw revenue grow by 4.8%. And also net profit after tax (NPAT) increased by 9% from the prior year.

Finally, the company had $47.6 million as cash on hand at the time.

You’ll want to see how BAP are performing now and if the company’s going to meet its 2020 targets.

With that out of the way, let’s take a look at the chart.

I’ve attached it for you below…

The Bapcor share price chart is range-bound

Bapcor Share Price Chart - ASX BAP

Source: Trading View

[Click to open in a new window]

What you’re looking at above is the weekly chart of Bapcor Ltd.

It goes back to its listing date and shows all the data until today.

I’ve placed three black horizontal lines on the chart.

The only thing you should know about this chart is that it’s range-bound.

For a while now Bapcor has been trading within a certain price range.

The low is around $4.98 and the high at $7.85.

The middle black line is $6.40, the halfway point between the high and the low. It just gives you an idea of how the shares moved over time.

While BAP is within this range, it wouldn’t be a stock I’d buy. It’s worth placing on your watchlist though, as a bit of bellwhether for the Aussie economy.

As always, this is not a recommendation to buy or sell BAP. It is an update only. I hope you found it useful.

Until next time,

Jonathan Evans Signature

Jonathan Evans,
Analyst, Profit Watch

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